Pricing Strategy and Governments Intervention for Green Supply Chain with Strategic Customer Behavior

Abstract

This paper researches the pricing strategy and government intervention mechanism for green supply chain in monopoly market, while considering strategic customer behavior. According to optimization theory, it establishes the target functions of retailer and strategic customers and investigates the interactions between retailer and strategic customers in accordance with Stackelberg’s game theory, so as to confirm the optimal discount level for green products. In addition, it discusses the regulatory effect of government intervention, including the guiding price and fiscal subsides, on the sales of green products. The research shows that the retailer can make the profit maximization by adjusting the discount level; the governments can regulate the sales of products by implementing the guiding price and fiscal subsides to the retailer.

A Decision-Making System for Low Carbon Manufacturing

“…Enterprises can meet the demand of consumers for green life and the policy pressures of low-carbon emission reduction. They can also gain more competitive advantages and higher profits than their competitors [ 17 ].…”

Pricing decisions for substitutable products with green manufacturing in a competitive supply chain

“…However, manufacturing will not develop without government financial intervention (Hafezalkotob, 2015(Hafezalkotob, , 2017. Moreover, GSCM is influenced by internal and external factors, while industry, people, and government are regarded as three vital sectors for GSCM (Ma et al, 2014;Kuei et al, 2015;Li et al, 2015;Zhang et al, 2016).…”

“…Although supply chain members differ in bargaining power, they are all in pursuit of maximum profits and minimum risk of potential losses (Laari et al, 2017). Many authors have investigated the GSCM from different perspectives (e.g., Ma et al, 2014;Kuei et al, 2015;Li et al, 2015;Zhang et al, 2016;Laari et al, 2017). However, it remains unclear how supply chain members make pricing strategies in a competitive, green-manufacturing context, and how the green investment of one manufacturer affects the supply chain performance.…”